Uzbekistan's imports rise by 15.7%: Trade deficit grows to $13.7 billion

Uzbekistan’s imports rose by 15.7% to $39.6 billion from January through September. Exports fell by 5.5% to $25.8 billion, according to the National Statistics Committee. Foreign trade turnover grew by 6.3% to $65.4 billion, $3.9 billion more than in the same period last year. The trade deficit stands at $13.7 billion.

Gold Missing from the Export Balance

The decline is attributable to gold. Uzbekistan did not export any gold in August. This year, there were only two months with gold exports: April, at $1.5 billion, and July, at $1.3 billion. This was reported by the Kun.uz portal, citing data from the Statistics Committee and the Central Bank.

From January through August, the Central Bank sold gold worth $2.8 billion, nearly three times less than in the same period last year. At that time, gold accounted for $8.32 billion of exports, or 35.2%. This year, that share stands at 12.3%.

The Central Bank of Uzbekistan cited the reason as early as June 30. Its balance of payments report for the first quarter noted that total exports had fallen due to “the absence of gold exports during the reporting period.” Imports rose by 29% in the first quarter to $13.9 billion. The trade deficit at that time stood at $8.3 billion, while the current account deficit was just under $5.8 billion. Foreign direct investment financed a large portion of this.

The gold remains in the country. Gold reserves rose from 12.6 million ounces (391.9 metric tons) at the beginning of the year to 14.1 million ounces (438.56 metric tons) on September 1.

Textiles and services are on the rise

Excluding gold, exports are growing strongly. They reached $13.3 billion, an increase of 31.6%. In the first half of the year, services accounted for the largest export category at $6.2 billion, up 35.7% from the previous year. Textile yarn and fabrics generated $975.9 million, an increase of 20.7%. Apparel rose by 31.4% to $629.9 million.

Trading partners are spread across more than 200 countries. China accounts for 23.2% of sales, Russia 16%, Kazakhstan 6.5%, Turkey 3.4%, and Afghanistan 2.4%.

For German exporters, Uzbekistan remains a growing import market. Machinery, equipment, and spare parts are finding buyers, as imports are rising by 15.7%. German goods compete there with Chinese suppliers, who account for nearly a quarter of trade. Investors should factor in gold as a risk to reserves and the balance of payments. Buyers of textiles and apparel will find a supplier in Uzbekistan with double-digit growth.

Sources: National Statistics Committee of Uzbekistan (EN), Central Bank of Uzbekistan (EN), Kun.uz (EN)

SK, Frankfurt